13th Jan 2022 10:54
(Alliance News) - Mitchells & Butlers PLC on Thursday blamed disruption caused by the most recent wave of coronavirus for a slight decline in sales over Christmas and New Year when compared to the pre-pandemic period.
The Birmingham-based operator of pubs, bars and restaurants saw a 6.0% drop in like-for-like sales for the seven weeks to January 8 when compared to the same period two years ago, before the pandemic.
Like-for-like sales in the year to date - the 15 weeks to January 8 - declined by 1.5% from two years ago, the company added, with total sales down 5.2%, hit by Covid-related site closures.
However, in the eight weeks to November 20, before the UK government's 'Plan B' restrictions went in place, like-for-like sales were up 2.7% from 2019.
Mitchells & Butlers said it had experienced an encouraging performance until early December when concerns first arose around the emergence of the new Covid variant, Omicron, leading to calls by government officials and scientists for caution in socialising, which resulted in a downturn in activity across the pub and bar sector.
The knock from Omicron was felt over the important festive season, the pub operator added, with like-for-like sales down 10% from Christmas 2019.
Mitchells & Butlers operates the Harvester, Toby Carvery and All Bar One chains, among others. Drink sales have been worst affected by the pandemic. They were down 9.1% in the full 15-week period, compared to a 5.2%.
"This first-quarter performance represents a robust performance given the challenges the industry faces from the rapid spread of the new variant both in terms of reduced consumer activity and disruption caused by the inevitable isolation of team members," said Chief Executive Phil Urban.
"Experience shows that as restrictions ease, and confidence returns, our business is able to swiftly recover. To that end, whilst we expect activity to continue to be adversely impacted in the short term, we are encouraged by the latest data on the Omicron variant which we believe will boost consumers' confidence to return to pubs and restaurants allowing us to regain the momentum which was beginning to build, supported by the benefits from our new set of Ignite initiatives."
Shares were up 0.9% at 260.00 pence each on Thursday morning in London.
By Will Paige; [email protected]
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